Mergers used to be few and far and between in the investment company industry but post-pandemic they have taken off.
This year three investment company mergers have completed, one more is underway and in 2021 there were five. In the previous five years, from 2016 to 2020, there were just five mergers in total. So why are there more mergers and are they creating ‘merger magic' for shareholders? Shareholders are clearly keen to invest in larger, more liquid investment companies which have lower charges and potential for better performance. Boards are also more proactive in acting to meet shareholders' needs and are aware that mergers have usually been well-received by shareholders. The merger of...
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